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March 1, 2002

Marathon, Golar in Tijuana LNG project
Marathon Oil Company and project partners Pertamina, Golar LNG Limited and Grupo GGS, S.A. de C.V., yesterday proposed plans for a major LNG complex near Tijuana, Mexico. With a potential start-up in 2005, the complex would have the capacity to re-gasify up to 750 million cubic feet per day (mmcfd) of LNG for both export to Southern California and local use.

The LNG re-gasification and associated power generation project would be developed on the Pacific coast, south of Tijuana. The complex would consist of a LNG marine terminal designed to accommodate tankers transporting LNG from various sources around the world, an off-loading terminal, onshore LNG re-gasification facilities, and pipeline infrastructure necessary to transport the natural gas to local and export markets. In addition, a 400 megawatt natural gas-fired power generation plant would be constructed on the site. Electricity from the plant would be offered for local use, as well as for export to Southern California.

In addition to supplying natural gas and electric power, the project partners anticipate treating a portion of local municipal wastewater for use by the complex as process water. This would result in significant environmental benefits by reducing the amount of municipal waste discharged to the Pacific Ocean. The project also may include the addition of a 20 million gallon per day water desalinization facility to provide water for the growing local market.

LNG for the Baja Project would be supplied from various sources around the world with a significant portion coming from the Asia-Pacific region. Pertamina, the state-owned oil company of Indonesia and world's largest exporter of LNG, is expected to be a key supplier for the Project.

Commenting on the Project, Pertamina President Director and CEO, Baihaki Hakim, said, "Indonesia's world-class natural gas reserves have positioned Pertamina as a major participant in the global LNG marketplace. One of our key strategies is to seek out new gas market opportunities like the Baja Project, and work closely with strategic partners like Marathon in developing such promising ventures."

John Fredriksen's Bermuda-based Golar LNG Limited currently operates 10 LNG Vessels of which six are under direct ownership. Golar will also take delivery of a further four new-build vessels over the period 2003 to 2004. In addition, the company's target is to achieve a major strategic long-term position as an LNG trader that buys LNG from various sources and sells gas to LNG customers around the world. As part of its trading activity, Golar says it will consider investing in other parts of the LNG value chain, such as liquefaction or re-gasification projects.

Golar LNG executive VP Sveinung St°hle commented: "We are proud to have been selected as one of the partners in the Baja LNG Import Project. Our participation is in line with the strategy Golar LNG announced when the company went public last year. The investment will be financed with internal and external resources and in addition to the sound financial return, the project gives GOLAR LNG a competitive edge in a project which, due to the long haul transportation can include chartering of up to 10 LNG carriers."